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Mortgage rates have started the month slightly high. In May, 30-year mortgage rates averaged around 6.76%, according to Zillow data. But they’ve gone up a bit in recent days. 

As inflation decelerates and the Federal Reserve starts to lower the federal funds rate, mortgage rates are expected to come down. But we’ll need more data showing that inflation is sustainably coming down before the Fed will consider cutting rates. If inflation remains elevated, mortgage rates will stay high, too.

It’s possible hopeful homebuyers will need to wait until next year if they want to snag a substantially lower rate. According to the Mortgage Bankers Association, rates could drop to 5.9% by the end of 2025. But this year, they might only drop to the mid-6% range.

Current Mortgage Rates

Mortgage type Average rate today
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Current Refinance Rates

Mortgage type Average rate today
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mortgage rates on Zillow

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Mortgage Calculator

Use our free mortgage calculator to see how today’s mortgage rates would impact your monthly payments. By plugging in different rates and term lengths, you’ll also understand how much you’ll pay over the entire length of your mortgage.

Mortgage Calculator

$1,161
Your estimated monthly payment

Total paid$418,177
Principal paid$275,520
Interest paid$42,657
  • Paying a 25% higher down payment would save you $8,916.08 on interest charges
  • Lowering the interest rate by 1% would save you $51,562.03
  • Paying an additional $500 each month would reduce the loan length by 146 months

Click “More details” for tips on how to save money on your mortgage in the long run.

Mortgage Rates for Buying a Home

30-Year Fixed Mortgage Tick Up (+0.20%)

The current average 30-year fixed mortgage rate is 6.91%, up 20 basis points from where it was this time last week, according to Zillow data. This rate is flat compared to a month ago, when it was also 6.91%. 

At 6.91%, you’ll pay $659 monthly toward principal and interest for every $100,000 you borrow.

The 30-year fixed-rate mortgage is the most common type of home loan. With this type of mortgage, you’ll pay back what you borrowed over 30 years, and your interest rate won’t change for the life of the loan.

20-Year Fixed Mortgage Rates Increase (+0.25%)

The average 20-year fixed mortgage rate is 25 basis points up from where it was last week, and is sitting at 6.58%. This time last month, the rate was 6.69%.

With a 6.58% rate on a 20-year term, your monthly payment will be $750 toward principal and interest for every $100,000 borrowed.

A 20-year term isn’t as common as a 30-year or 15-year term, but plenty of mortgage lenders still offer this option.

15-Year Fixed Mortgage Rates Go Up (+0.13%)

The average 15-year mortgage rate is 6.17%, 13 basis points lower than last week. It’s down compared to this time last month, when it was 6.25%.

With a 6.17% rate on a 15-year term, you’ll pay $853 each month toward principal and interest for every $100,000 borrowed.

If you want the predictability that comes with a fixed rate but are looking to spend less on interest over the life of your loan, a 15-year fixed-rate mortgage might be a good fit for you. Because these terms are shorter and have lower rates than 30-year fixed-rate mortgages, you could potentially save tens of thousands of dollars in interest. However, you’ll have a higher monthly payment than you would with a longer term.

7/1 ARM Rates Stay Flat (No Change)

The 7/1 adjustable mortgage rate is unchanged from a week ago at 6.63%. It’s down compared to a month ago, when it was at 7.63%. 

At 6.63%, your monthly payment would be $641 toward principal and interest for every $100,000 borrowed — but only for the first seven years. After that, your payment would increase or decrease annually depending on the new rate.

5/1 ARM Rates Inch Up (+0.09%)

The average 5/1 ARM rate is 6.69%, a nine-basis-point increase from last week. It’s down compared to where it was a month ago, when it was 7.42%.

Here’s how a 6.69% rate would affect you for the first five years: You’d pay $645 per month toward principal and interest for every $100,000 you borrow.

30-year FHA Rates Rise (+0.24%)

The average 30-year FHA interest rate is 6.27% today, which is up 24 basis points from last week. This rate was 6.16% a month ago.

At 6.27%, you would pay $617 monthly toward principal and interest for every $100,000 borrowed.

FHA mortgages are good choices if you don’t qualify for a conforming mortgage. You’ll need a 3.5% down payment and 580 credit score to qualify.

30-year VA Rates Increase Somewhat (+0.20%)

The current VA mortgage rate is 6.14%, 20 basis points higher than this time last week. This rate was 6.29% a month ago.

With a 6.14% rate, your monthly payment would be $609 toward principal and interest for every $100,000 you borrow.

Mortgage Refinance Rates

30-Year Fixed Refinance Go Up (+0.20%)

The average 30-year refinance rate is 7.76%, 20 basis points higher than last week. It’s up compared to a month ago, when it was 7.48%.

Here’s how a 7.76% rate would affect your monthly payments: You’d pay $717 toward principal and interest for every $100,000 borrowed.

Refinancing into a 30-year term can land you lower monthly payments, but you’ll ultimately pay more by refinancing into a longer term.

20-Year Fixed Refinance Rates Nearly Flat (+0.03%)

The current 20-year fixed refinance rate is 6.94%, which is up just three basis points compared to a week ago. This rate was 6.78% this time last month.

A 6.94% rate on a 20-year term will result in a $772 monthly payment toward principal and interest for every $100,000 you borrow.

15-Year Fixed Refinance Rates Drop Half a Percentage Point (-0.57%)

The average 15-year fixed refinance rate is 5.79%, which is 57 basis points lower compared to last week. It’s also down compared to this time a month ago, when it was at 6.31%.

A 5.79% rate on a 15-year term means you’ll pay $833 each month toward principal and interest for every $100,000 borrowed.

Refinancing into a 15-year term can save you money in the long run, because you’ll get a lower rate and pay off your mortgage faster than you would with a 30-year term. But it could result in higher monthly payments.

7/1 ARM Refinance Rates Inch Up (+0.08%)

The average 7/1 ARM refinance rate is 6.83%, up eight basis points from where it was last week. It’s down from a month ago, when it was 8.19%.

Refinancing into a 7/1 ARM with a 6.83% rate means your monthly payment toward principal and interest will be $654 for every $100,000 you borrow. This will be the payment for the first seven years, then your rate will change annually unless you refinance again.

5/1 ARM Refinance Rates Rise (+0.34%)

The 5/1 ARM refinance rate is 6.88%, which is just three basis points lower than it was this time last week. It’s down compared to this time last month, when it was 7.93%.

A 6.88% rate will result in a monthly payment of $657 toward principal and interest for every $100,000 borrowed. You’ll pay this amount for the first five years of your new mortgage.

30-Year FHA Refinance Rates Flat (No Change)

The 30-year FHA refinance rate is 5.79%, which is the same as it was last week. This rate was 6.03% this time last month.

A 5.79% refinance rate would lead to a $586 monthly payment toward the principal and interest per $100,000 borrowed.

30-Year VA Refinance Rates Tick Up (+0.24)

The average 30-year VA refinance rate is 6.07%, which is up 24 basis points compared to where it was was last week. This rate was 6.10% a month ago.

At 6.07%, your new monthly payment would be $604 toward principal and interest for every $100,000 you borrow.

Are Mortgage Rates Going Down?

Mortgage rates started ticking up from historic lows in the second half of 2021 and increased over three percentage points in 2022. Mortgage rates also rose dramatically in 2023, though they started trending back down toward the end of the year. Though rates have been somewhat elevated recently, they should go down by the end of 2024. 

For homeowners looking to leverage their home’s value to cover a big purchase — such as a home renovation — a home equity line of credit (HELOC) may be a good option while we wait for mortgage rates to ease further. Check out some of our best HELOC lenders to start your search for the right loan for you.

A HELOC is a line of credit that lets you borrow against the equity in your home. It works similarly to a credit card in that you borrow what you need rather than getting the full amount you’re borrowing in a lump sum. It also lets you tap into the money you have in your home without replacing your entire mortgage, like you’d do with a cash-out refinance.

Current HELOC rates are relatively low compared to other loan options, including credit cards and personal loans. 

Molly Grace

Mortgage Reporter

Source: businessinsider.com

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Enjoy complimentary access to top ideas and insights — selected by our editors.

Consider yourself a scholar of the latest mortgage servicing litigation and Fannie Mae announcements? In this week’s National Mortgage News quiz, test your knowledge on articles covering the “zombie property apocalypse,” fraud, and more!

Click here to try out last week’s test.

Source: nationalmortgagenews.com

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If we overlook the nearly unchanged performance from last Friday, mortgage rates were on a 5 day losing streak as of yesterday afternoon with the 30yr fixed rising about a quarter of a percent.  That streak ended today as the bond market responded to favorable inflation data and tame comments from the Fed. 

We can also consider that some of the recent upward momentum was a factor of this week’s Treasury auction cycle which ended yesterday afternoon.  Mortgage rates are based on bonds that tend to correlate with US Treasuries and the latter certainly took some directional cues from this week’s scheduled Treasury auctions.

Speculation aside, there was a clear reaction to this morning’s quarterly PCE Price Index revision.  Even though this data is “stale” by most standards, a mere 0.1% revision lower helped rates drop by 0.05% on average.  While that’s a solid victory for a single day, it means that rates remain in much higher territory versus last week.

Tomorrow morning brings the more timely, monthly version of the same PCE inflation data. It will be a new release for the month of April whereas yesterday’s data was Jan-Mar.  If it is 0.1% lower than expected, that would likely be a much bigger deal for bonds and rates, but there’s an equal chance of an opposite result.  Volatility potential is elevated either way.

Source: mortgagenewsdaily.com

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Homebuyers should know which moves to make – and which mistakes to avoid – ahead of the new month.

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As the calendar turns to June, many homebuyers may be wondering what’s in store for the real estate market and larger rate environment. With inflation stubborn — if significantly cooled — and interest rates stuck at their highest point in decades, homebuyers haven’t had much luck lately. Combined with limited inventory and higher home prices, this spring hasn’t been an opportune time for many homebuyers. 

But June brings both new inflation numbers and another Federal Reserve announcement on rates, both of which will be released on June 12. And if the former is lower or even trending in the right direction, it could lead to positive changes in the rate climate — and give homebuyers a much-needed boost. But if inflation remains inconsistent, the Fed may hint at rate hikes to come, or higher rates for longer. 

Against this frustrating backdrop, then, homebuyers should consider making some smart moves now, ahead of June. They should also do their best to avoid making certain costly rate mistakes. Below, we’ll break down three to avoid now.

See what mortgage rate you could qualify for here now.

3 mortgage rate mistakes to avoid in June

In today’s volatile rate climate, homebuyers need to be judicious in their approach. This means avoiding easy-to-make mistakes such as:

Waiting for the Fed to cut rates

There’s no guarantee that the Fed will cut the federal funds rate, which influences what lenders offer for mortgages, on June 12. It’s more likely that they’ll keep the rate the same at a range between 5.25% and 5.50%, as it has been since last summer. But even if they were to issue a cut, it’s only likely to be a quarter of a percentage point reduction, which will lead to a negligible difference in mortgage rates. 

At the same time, if buyers wait and rates rise — or even if the Fed simply hints at potential rate rises — the mortgage rate climate will become even more costly than it already is. So don’t wait for that to happen.

Get started with a mortgage here now.

Not locking in a rate now

While today’s mortgage rate of 7.17% for a 30-year mortgage isn’t most homebuyers’ idea of a good deal, particularly compared to the record-low rates of recent years, it’s also, historically, not that high. Mortgage rates have often been in the double digits in recent decades. And with the potential for rates to rise even further before this inflationary cycle is permanently cooled, it may not make sense to wait for a lower rate that never comes. 

Instead, consider locking in the lowest rate you can find now. You could always unlock and relock a lower one before closing — or refinance when rates drop at some point in the future. But not locking in today’s rates now could be a mistake, especially if they head up toward 8% again. 

Not knowing exactly which loan type to choose

In today’s mortgage rate climate, you’ll need to be nimble. That may mean exploiting a small window to lock in a mortgage rate. So it’s important to know exactly which mortgage type you plan to use now, before that time comes. While a conventional mortgage is often the most popular, an adjustable-rate mortgage, in which the rate changes over time but may be lower to start, offers unique advantages for borrowers right now. 

Similarly, buying mortgage points to secure a lower rate may be helpful for some, especially in June. Whatever route you choose, make sure your lender knows your preference in advance, so that you can capitalize on any favorable rate changes when they arise.

The bottom line

In today’s mortgage rate market, it’s equally important for homebuyers to know what to do as it is to know which mistakes to avoid. To that end, buyers should strongly consider locking in a rate now and avoid waiting for the Fed to help with any favorable rate changes. They should also know exactly which mortgage type they plan to use now, so that they can pursue this loan type when their lender calls with an urgent need to act. With just weeks left before potential rate news in mid-June, buyers should consider getting to work now. 

Matt Richardson

Matt Richardson is the managing editor for the Managing Your Money section for CBSNews.com. He writes and edits content about personal finance ranging from savings to investing to insurance.

Source: cbsnews.com

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Two major government-related mortgage investors, at the direction of their regulator and conservator, are updating a key vehicle that helps seriously delinquent borrowers, who have long-term income reductions and distressed mortgages, to afford monthly payments.

The upcoming changes in the Flex Modification program that government-sponsored enterprises Freddie Mac and Fannie Mae offer to qualified borrowers respond to lessons learned from the pandemic and the market’s high home-equity levels and financing costs.

The updates set for later this year will give struggling borrowers “a meaningful mortgage payment reduction in the current environment of elevated interest rates and home prices,” Federal Housing Finance Agency Director Sandra Thompson said in a press release.

One prominent change of many planned for the mods, which make a series of adjustments to loan terms within certain parameters, is to expand a market-to-market loan-to-value ratio limit that determines access to both lower rates and the ability to add unpaid amounts to a mortgage.

(Higher LTVs were originally emphasized as a parameter for assistance when modifications became more widespread and standardized amid the Great Recession, a period in which, unlike today, there was heavy equity depletion.)

Currently only borrowers with post-modification mark-to-market LTVs of 80% can achieve certain reductions of their contractual rate or capitalization of arrearages, but those above 50% will be able to do so after the latest changes go into effect.

The change partially restores some of the temporary leeway instituted during the transition out of pandemic forbearance, when the COVID-19 version of the Flex Mod applied potential rate reduction regardless of loan-to-value ratio. That was later retired as COVID-19 policies ended.

Overall, foreclosure prevention programs appear to have been effective in containing distress based on Freddie and Fannie’s serious delinquency rates, which have been lower than they were prior to the pandemic.

Just 0.51% single-family loans had payments three months late or were in foreclosure as of April, compared to 0.52% the previous month and 0.61% a year ago.Fannie Mae’s number for April was the same as Freddie’s and compared to 0.53% in March and 0.58% a year earlier.

The latest changes may help some within that small percentage of serious delinquent borrowers return to paying status.

In addition to providing some more leeway around the LTV limit, Freddie, Fannie and their oversight agency also are adjusting term extensions, which have not been subject to limitations based on equity levels.

Currently, term extensions are for a set 40 years. Shorter terms will be possible in the future if the loan can achieve the program’s 20% principal-and-interest payment reduction target without going out 40 years. (There also is a target limit to forbearance.)

This adjustment is anticipated to achieve lower payments more in line with the targeted range. Loans with a 10% reduction or less have had less favorable reperformance rates. Reductions above 20% have made little difference in whether a loan reperforms.

The Flex Mod changes are set to go into effect on Dec. 1.

In addition to the aforementioned criteria that generally pertain to the fixed rate mortgages that dominate the market, Flex Mods have several other parameters that may limit their applicability to borrowers. They also have some nuances where adjustable-rate loans are concerned.

One of the notable limitations is that more recent borrowers and certain lenders don’t have access to Flex Mod assistance, said Taylor Stork, president of the Community Home Lenders of America and chief operating officer of Developer’s Mortgage Company. A loan must be at least a year old to qualify for a Flex Mod.

Independent mortgage bankers who originate and sell loans servicing-released have certain buyback responsibilities for loans that default relatively soon after origination, Stork said. 

“This is not going to fit in newer borrowers because of the traditional early-payment default repurchase model in the industry, and it does not add any value to non-servicing IMBs that originate,” said Stork, commenting on the upcoming Flex Mod enhancements.

The issue is part of broader, ongoing discussions the industry and the GSEs are having about whether there might be more that can be done to provide alternatives to loan repurchases that can impose a heavy financial burden on mortgage companies.

Source: nationalmortgagenews.com

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This week’s most hotly anticipated report–monthly core PCE inflation–came in 0.2% versus a median forecast of 0.3% this morning.  That’s welcome news for a bond market that’s been concerned about surprisingly high inflation numbers in Q1, but not a wholly resounding victory considering the unrounded number (.249%) was as high as it could have been without being rounded up to 0.3%.  Fortunately, other components of the report also leaned toward the bond-friendly side of the argument.  Cap it all off with an exceptionally weak Chicago PMI and bonds are starting the day with a move back into last week’s 4.34-4.50 range.

Source: mortgagenewsdaily.com

Mortgage rates pushed further into the 7% range as the Federal Reserve seems unlikely to reverse its restrictive policy stance anytime soon, according to Freddie Mac.

The average 30-year fixed-rate mortgage was 7.22% for the week ending May 2, according to Freddie Mac’s latest Primary Mortgage Market Survey. That’s an increase from the previous week when it averaged 7.17%. A year ago, the 30-year fixed-rate mortgage averaged 6.39%. 

The average rate for a 15-year mortgage was 6.47%, up from 6.44% last week and up from  5.76% last year.

On Wednesday, the Fed announced it would maintain the federal funds rate at 5.25% to 5.5%, where rates have held steady since last July. Fed officials have said in past meetings that they anticipated rate cuts for 2024 but need more confidence that inflation is heading toward the 2% target rate. Fed Chair Jerome Powell reiterated this sentiment on Wednesday and said it would likely take longer for the central bank to gain this confidence when speaking with reporters.

The delay in rate cuts means mortgage rates will likely stay high longer. With no ease in sight, affordability will continue to be a challenge for homebuyers, who also contend with high home prices. 

“The 30-year fixed-rate mortgage increased for the fifth consecutive week as we enter the heart of Spring Homebuying Season,” Freddie Mac’s Chief Economist Sam Khater said. “On average, more than one-third of home sales for the entire year occur between March and June. With two months left of this historically busy period, potential homebuyers will likely not see relief from rising rates anytime soon.”

If you are ready to shop for the best rate on a new mortgage, consider visiting an online marketplace like Credible to compare rates and get preapproved with multiple lenders at once.

BUY A HOME IN THESE STATES TO GET STUDENT LOAN DEBT RELIEF

How higher rates are impacting housing

Homebuyers are looking for ways to lower their costs as high mortgage rates persist. Recently, there have been an increase in proptech solutions, down payment assistance and even rate buydowns, Percy.AI Founder and CEO Charles Williams said. 

“Homebuyers are looking to use whatever incentives they can score,” Williams said. “We expect some of these initiatives to remain even after rates start heading down meaningfully, which is unlikely this year.”

Buyers have also increasingly turned to adjustable-rate mortgages (ARMs) for a discount. Compared to more traditional mortgage products, ARMs offer lower initial interest rates before adjusting to higher rates in the future. 

“With affordability remaining a challenge, more prospective buyers are turning to adjustable-rate mortgages to lower their monthly payments in the short-term,” Bob Broeksmit, the Mortgage Bankers Association president and CEO, said. “The ARM share of applications last week reached 7.8% – the highest level this year.”

If you’re looking to become a homeowner, you could still find the best mortgage rates by shopping around. Visit Credible to compare your options without affecting your credit score.

HOMEOWNERS COULD SAVE TENS OF THOUSANDS IN DAMAGES BY USING SMART DEVICES

Home prices increase

Buyers waiting for relief from high home prices will have to wait longer. Home prices are now 6.4% above their level last year, up from the 6% increase registered in January, according to the latest S&P CoreLogic Case-Shiller national home price index report.  

Fannie Mae readjusted its home price projection and forecasts upward, forecasting prices to increase 4.8% annually in 2024 and 1.5% in 2025.

“Buyers are mainly waiting to see if prices go down, too, to balance things out,” Williams said. “That is not likely to happen soon. So, buyers who can afford a home are buying, but only if they can outcompete in this crazy market.”

One way to use your home’s equity is through a cash-out refinance to help you pay down debt or fund home improvement projects. Visit Credible to find your personalized interest rate without affecting your credit score. 

THIS IS THE #1 CITY FOR FIRST-TIME HOMEBUYERS, AND OTHER HOT US HOUSING MARKETS

Have a finance-related question, but don’t know who to ask? Email The Credible Money Expert at [email protected] and your question might be answered by Credible in our Money Expert column.

Source: foxbusiness.com

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The data breach that knocked out First American Financial Corp.’s systems at the end of last year impacted 44,000 individuals, the company revealed. 

The title insurer and real estate services provider Tuesday disclosed the scope of the hack for the first time in a Securities and Exchange Commission filing. First American hasn’t defined the hack as a cyberattack, but said its probe was completed and that individual’s personal information may have been accessed without authorization. 

The incident, discovered Dec. 21, forced First American’s systems to go offline for a week, a move which led its competitors to pick up its business. First American acknowledged the hack hurt its revenue in its fourth quarter earnings. 

The company said it would notify potentially affected clients and offer them complimentary credit monitoring and identity protection services. Tuesday’s announcement was posted underneath a company disclosure regarding election results for its board of directors.

The hack on First American came amid a wave of cyberattacks on mortgage players, including major hits to Mr. Cooper and Loandepot. Both of those giants also said their respective data breaches hurt quarterly earnings. 

First American had $46.7 million in net income to begin the year, both a quarterly and annual improvement. Its title revenue however dropped slightly year-over-year to $1.32 billion. Company leaders said the December incident wouldn’t harm business moving forward, and they reported orders rising in March and April. 

Cybercriminals are likely to use First American’s infrastructure to “island hop” to other financial services players, said Tom Kellerman, senior vice president of cyberstrategy at Contrast Security. He warned of the threat of home equity fraud, where a criminal could establish a line of credit against someone else’s home. 

“Inevitably the owner of the home is the one that’s penalized by the system for not paying their debt,” he said. “And that is increasing. That is my biggest concern regarding this breach.”

Source: nationalmortgagenews.com

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Co-Issue, MERS Audit Products; Retirement, Wholesaler Lawsuit, MBA and CFPB Requesting Info

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Co-Issue, MERS Audit Products; Retirement, Wholesaler Lawsuit, MBA and CFPB Requesting Info

By:
Rob Chrisman

Fri, May 31 2024, 11:42 AM

How is it that there are only three weeks until the summer solstice? Three more weeks of the amount of daylight increasing in the Northern Hemisphere, and then, if you want more sun time, head to the Southern half of the globe. If you think presidential administrations or Federal Reserves eliminate business cycles, they don’t. If your business model is based on lower rates, don’t look at this graph from the Federal Reserve. If you want some insight into builder business and builder associations, today’s “Rundown” has Christy Beck, Corporate Director of Sales and Marketing for Caruso Homes and the current President of the Raleigh-Wake County Home Builders Association (which is one of the largest HBAs in the country). If you think everything that you do is private, sorry. I’m not sure why every outfit needs to keep so much info about us. When we want to buy a ticket we should be able to buy it without our info being kept, because then it can become part of a Ticketmaster data breach and sold to bad people. (Found here, this week’s podcasts are sponsored by American Financial Resources, the mortgage lender that’s shaking things up by streamlining processes, bringing on the best humans in the business, and putting the customer experience front and center. Hear an interview with Tim Braheem on both how originators can cultivate relationships with agents in today’s market and also diversify their referral sources, so they are not so reliant solely on realtors.)

Software, Products, and Services for Lenders and Brokers

In Q4 2023, independent mortgage banks (IMBs) and mortgage subsidiaries of chartered banks reported an average net loss of $2,109 per loan, nearly double the $1,015 lost per loan in Q3. How can mortgage lenders tackle these rising costs while staying profitable? Join Kevin Peranio (PRMG), Richard Grieser (Truv), and Rob Chrisman on a webinar next week to find out. Learn from real-world examples of lenders reducing production costs through technological innovation and process optimization. June 4 at 1pm CT. Register now.

“Bueller? Bueller? Yes, you heard it right! It’s time to channel your inner Ferris and seize the day with MQMR’s Summer Special for MERS audit. Picture yourself in the role of the charismatic Ferris Bueller, effortlessly taking charge and making the most of every opportunity. Just like Ferris, you can make your MERS Audit unforgettable, and with our special offer, you’ll be saving some serious cash while you’re at it! In the words of Ferris himself, ‘Life moves pretty fast. If you don’t stop and look around once in a while, you could miss it.’ At MQMR, we embrace Ferris’s philosophy by staying ahead of the curve. With our proactive approach, MQMR guarantees a compliant and hassle-free MERS Audit experience! Like Ferris’s legendary day off, this MERS offer won’t last forever! Our audit professionals will ensure that your MERS audit is as spotless as Ferris’s slick moves. Schedule a call!”

“Newrez Correspondent is thrilled to announce that Co-Issue has been added to our suite of delivery methods. If you are interested in Newrez’s Co-Issue program, please contact your Regional Sales Manager. In addition to Co-Issue, we have several other delivery methods and executions that will help you succeed in today’s market. We have also added Delegated Non-QM and Closed-end Home Equity products to enhance your product offering. Not approved? Sign up today! A big thank you to all of our clients, prospects and industry partners for spending your valuable time with our team at the National Secondary in NY. You can meet Tom Van Auken, Alex Weems and Chris Nobile at the upcoming 40th Regional Conferences of the MBAs in Atlantic City, NJ, June 4-7 at the Hard Rock Hotel and Casino to discuss all that Newrez has to offer.”

Supersonic Lawsuit

Anyone can sue anyone at any time, but this particular mortgage case has some nuances, including allegedly stealing a brand.

Jet Mortgage is the Wholesale division of Home Mortgage Alliance Corporation (HMAC). Around May 1, Michael Turturro, who was the head of Jet, allegedly took a number of AEs and went to OCMBC and set up Jet Alliance Mortgage. Execs and AE going to competitors is a fairly common occurrence in the California mortgage market (and elsewhere) but taking the brand, if true, is a new twist. That’s why, in addition to other claims, HMAC has filed suit in the Superior Court of the State of California in Orange County against Turturro and his new employer OCMBC, Inc., Irvine, CA.

Santa Ana-based Home Mortgage Alliance Corporation (HMAC), the owner of Jet Mortgage, released the following statement regarding the lawsuit it has filed in the Superior Court of the State of California in Orange County against a former senior executive, Michael Turturro, and his new employer OCMBC, Inc., Irvine, CA.

The Company released the following statement. “While surprised and deeply disappointed by the events that forced us to take legal action, we intend to let the lawsuit speak for itself. We are speaking out, however, to address the rumors being spread in the marketplace about our business and our brand. Jet Mortgage is very much still in business and is actively soliciting and processing new loans. We remain committed to the wholesale market and have both the resources and the capital to deliver a superior experience to our mortgage broker clients and their customers.

“On an interim basis, Alfred Hanna, founder of both Jet Mortgage and HMAC, will assume the day-to-day leadership of Jet Mortgage until a new executive has been appointed. Hanna remains fully committed to investing in, and growing, the Jet Mortgage brand. With more than 40 years of experience in all aspects of the mortgage business, Hanna has built three highly successful mortgage companies including a company that, at one time, was the largest Realtor-based mortgage company in California. Over the course of his career, Hanna has led these companies through a number of economic downturns.

“Under his leadership, we have already taken steps to deploy additional underwriting and processing resources so that the Company can continue to provide extraordinary service to our broker clients. In the weeks to come, the Company will be announcing a number of high-level, high-quality executive and account executive hires.”

Founded in 2013, HMAC is a national mortgage lender licensed in 47 states with 13 branches employing more than 175 loan officers. Its Jet Mortgage division was established in 2022 and is a national wholesale lender, serving more than 1,900 mortgage brokers nationwide.

CFPB Asks Mortgage Industry about Fees

With your opinion about a Request for Information (RFI) regarding fees imposed in residential mortgage transactions. You can access the RFI here.

The California MBA Wants to Hear From You

With your opinion about insurance. “Our association has launched a public affairs campaign to draw attention to the insurance crisis that is affecting property owners throughout the state. We know that homeowners and commercial property owners are getting dropped from their insurance carriers, facing uncompetitive costly new polices, or having to turn to the FAIR plan or force-placed insurance as a last resort.

“California MBA has the opportunity to increase awareness of how the crisis is impacting homeowners and business owners and increase pressure on policymakers to adopt swift and meaningful solutions. We are developing materials and will be distributing messages through a variety of communication channels to encourage business community engagement and coalition activation.

“We will be calling for the Legislature and Insurance Commissioner to take actions that will lead to more reliable rates, greater insurance availability, and safer communities. As such, we would like to show the harm that is occurring across the state from this crisis.

“Can you help by sharing examples of how the insurance crisis is impacting your business or your customers? We would like to point to real-life examples of the consequences across California. Here is a link to fillable form to enter any helpful information or examples. (Any questions should be addressed to California MBA CEO Susan Milazzo.)

Capital Markets

There’s not a lot of reason for rates to drop much. But is U.S. economic growth going to slow enough to help the Fed’s fight against inflation? We learned yesterday that Q1 Gross Domestic Product was revised downward to 1.3 percent from 1.6 percent, as expected but primarily driven by weaker consumer spending, which grew at 2.0 percent, down from the previous estimate of 2.5 percent. Initial jobless claims remained stable, in line with expectations and indicating a generally solid labor market. Pending home sales experienced a notable decline in April, with contract signings dropping across all regions, particularly in the Midwest and West.

Today’s month-end session brings Fed favorite Personal Core Expenditures, the Fed’s favorite gauge of inflation. For April it was +.2 percent, year over year +2.7 percent. Expectations were for the core PCE Price Index increasing 0.3 percent month-over-month and 2.8 percent year-over-year, unchanged from March, with personal income and spending (+.2 percent) increasing 0.2 percent and 0.4 percent, respectively. The core deflator year over year was +2.8 percent, as expected. Later today brings Chicago Purchasing Managers Index for May, and remarks from Atlanta Fed President Bostic. We begin the last day of the shortened workweek with Agency MBS prices a touch better from Thursday’s close, the 10-year yielding 4.53 after closing yesterday at 4.55 percent, and the 2-year still much higher at 4.92.

Employment

What are you doing for the next 25 years? ACC has been doing Non-QM for the past 25 years. ACC is seeking five (5) well-qualified Account Executives or a team that is looking for support, pricing, culture, and stability. ACC is the company that continued lending throughout COVID and the GFC. Recent article talks about ACC’s vision: ACC’s Senko talks non-QM outlook. Please send your resume for confidential interview.

“Evergreen Home Loans proudly marks 35 years of our innovative Security Plus Seller Guarantee®, the first of its kind in the industry. Our program provides an upfront, guaranteed financing commitment with minimal conditions. If we don’t uphold our commitment, we will pay the seller $5,000*, making your offer more attractive and giving you a competitive edge. Over the past 35 years, Security Plus has empowered countless buyers and sellers, simplifying the home buying process and ensuring confidence. As we continue to lead with innovative, customer-focused solutions, we invite talented loan officers and branch managers to join our team. Be part of a company that values excellence and innovation and help us continue making a difference in the home buying experience. To see available jobs here. *View disclosures here.

“Canopy Mortgage is on the rise, attracting top-producing loan officers nationwide and maintaining profitability as we advance through Q2! In a challenging market, how many national lenders can claim profitability this year? Few, if any. Canopy Mortgage is charging ahead with significant momentum, seeking branch managers to join our success story. We empower LOs with cutting-edge technology that streamlines processes and significantly reduces the cost to fund a loan. Come meet us in person at the Mastermind Summit in Vegas June 5-7 or call Josh Neumarker at 888-696-9076 – For more information or to schedule an exclusive Tech-Demo and see our innovative solutions in action.”

Mark Teteris writes, “30+ years flies by, even in the mortgage business, and I have decided to retire, effective June 1st. I was thrilled to join Optimal Blue nearly ten years ago and hope that I have played some small part in the amazing success the company has had over these years, and which I’m sure OB will continue to enjoy in the future. From the early days as an individual contributor and ‘rainmaker’ to building a new department within the sales organization to the director role I enjoy today, I have always felt at home here at Optimal Blue. That is a testament to the wonderful leadership and colleagues that make this place special. As part of my succession plan, Steven Baselice has been named the new Director of Solutions Specialists for Optimal Blue, effective June 1st.”

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Source: mortgagenewsdaily.com

Apache is functioning normally

Stale PCE Helped; Fresher Version Up Next

By:
Matthew Graham

Thu, May 30 2024, 4:21 PM

Stale PCE Helped; Fresher Version Up Next

The quarterly vs monthly PCE reports are potential sources of confusion for rate watchers.  To be fair, only the monthly version is a dedicated report.  The quarterly version is simply the sum of the 3 monthly reports + revisions, presented with the GDP release and revisions.  That’s the one that came out this morning, showing that Jan-Mar inflation was another 0.1% lower than initially reported.  Does that have a bearing on tomorrow’s dedicated monthly PCE numbers?  Not this time…  While that was the case last month (because the monthly report was for March… one of the months in Q1), tomorrow’s PCE inflation data is for April.  Thus, it is more interesting and more timely.  If today’s stale update was worth a modest rally, it’s a clue as to Friday’s potential volatility in the event of another deviation from expectations. 

    • Jobless Claims
      • 219k vs 218k f’cast, 216k prev
    • Core PCE Q/Q
      • 3.6 vs 3.7 previously 
    • GDP, Q1 1st revision
      • 1.3 vs 1.3 initial
    • Pending Home Sales 
      • -7.7% vs -0.6% f’cast, +3.6% prev

08:53 AM

moderately stronger overnight with additional gains after data.  MBS up 7 ticks (.22) and 10yr down 4.2bps at 4.573

11:17 AM

additional gains with MBS up 9 ticks (.28) and 10yr down 6.5bps at 4.55

01:33 PM

Sideways at the best levels.  MBS up 10 ticks (.31) and 10yr down 7.2bps at 4.543

03:41 PM

Still fairly flat, but off the best levels.  MBS up 9 ticks (.28) and 10yr down 6.2bps at 4.553

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Source: mortgagenewsdaily.com